MetLife 2013 Annual Report Download - page 149

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
9. Derivatives (continued)
Net Derivative Gains (Losses)
The components of net derivative gains (losses) were as follows:
Years Ended December 31,
2013 2012 2011
(In millions)
Derivatives and hedging gains (losses) (1) ............................................................. $(8,343) $(3,158) $ 6,108
Embedded derivatives ............................................................................ 5,104 1,239 (1,284)
Total net derivative gains (losses) .................................................................. $(3,239) $(1,919) $ 4,824
(1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented
elsewhere in this note.
The following table presents earned income on derivatives:
Years Ended December 31,
2013 2012 2011
(In millions)
Qualifying hedges:
Net investment income ............................................................................... $135 $111 $ 98
Interest credited to policyholder account balances .......................................................... 150 164 214
Other expenses .................................................................................... (6) (5) (4)
Non-qualifying hedges: ................................................................................
Net investment income ............................................................................... (6) (6) (8)
Other revenues ..................................................................................... — 47 75
Net derivative gains (losses) ........................................................................... 328 476 411
Policyholder benefits and claims ....................................................................... (292) (120) 17
Total ........................................................................................... $309 $667 $803
Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging
The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as
hedging instruments:
Net
Derivative
Gains (Losses)
Net
Investment
Income (1)
Policyholder
Benefits and
Claims (2) Other Revenues (3)
(In millions)
Year Ended December 31, 2013:
Interest rate derivatives ....................................................... $(3,458) $ — $ (27) $ —
Foreign currency exchange rate derivatives ........................................ (1,716) — — —
Credit derivatives — purchased ................................................ (21) (14) —
Credit derivatives — written .................................................... 130 1 — —
Equity derivatives ............................................................ (3,663) (25) (727) —
Total .................................................................... $(8,728) $(38) $(754) $ —
Year Ended December 31, 2012:
Interest rate derivatives ....................................................... $ (296) $ — $ — $ 28
Foreign currency exchange rate derivatives ........................................ (660) — — —
Credit derivatives — purchased ................................................ (298) (14) — —
Credit derivatives — written .................................................... 150 — — —
Equity derivatives ............................................................ (2,556) (9) (419) —
Total .................................................................... $(3,660) $(23) $(419) $ 28
Year Ended December 31, 2011:
Interest rate derivatives ....................................................... $3,940 $ (1) $ — $236
Foreign currency exchange rate derivatives ........................................ 343 (9) — —
Credit derivatives — purchased ................................................ 250 6 — —
Credit derivatives — written .................................................... (75) (1) — —
Equity derivatives ............................................................ 1,178 (35) (87) —
Total .................................................................... $5,636 $(40) $ (87) $236
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